Fitbit, Inc. (NYSE:FIT) today reported revenue of $261 million, GAAP net loss per share of $(0.39), non-GAAP net loss per share of $(0.12), GAAP net loss of $(104) million, non-GAAP net loss of $(32) million, cash flow from operations of $33 million, and non-GAAP free cash flow of $28 million for its second quarter of 2020.
"We have been focused on helping our community stay physically active and mentally well during the pandemic. In this uncertain COVID-19 environment, we are seeing consumers turn to options that enable them to take charge of their health, such as Fitbit devices. In addition, many customers have taken advantage of Fitbit's free premium trial offering and signed up for our subscription service," said James Park, co-founder and CEO. "While COVID-19 has impacted our business and there continues to be uncertainty around consumer demand and the economy, we are encouraged by the 12% year-over-year POS sales growth we've seen at retail and through Fitbit.com."
Second Quarter 2020 Financial Summary |
||||||||||||||||
|
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||
In millions, except percentages and per share amounts |
|
July 4, 2020 |
|
June 29, 2019 |
|
July 4, 2020 |
|
June 29, 2019 |
||||||||
GAAP Results |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
261.3 |
|
|
$ |
313.6 |
|
|
$ |
449.4 |
|
|
$ |
585.4 |
|
Gross Margin |
|
35.6 |
% |
|
34.5 |
% |
|
32.9 |
% |
|
33.8 |
% |
||||
Net loss |
|
$ |
(104.1) |
|
|
$ |
(68.5) |
|
|
$ |
(83.8) |
|
|
$ |
(148.0) |
|
Net loss Per Share |
|
$ |
(0.39) |
|
|
$ |
(0.27) |
|
|
$ |
(0.31) |
|
|
$ |
(0.58) |
|
Non-GAAP Results |
|
|
|
|
|
|
|
|
||||||||
Gross Margin |
|
37.6 |
% |
|
35.6 |
% |
|
35.2 |
% |
|
34.9 |
% |
||||
Net loss |
|
$ |
(31.5) |
|
|
$ |
(35.8) |
|
|
$ |
(96.1) |
|
|
$ |
(73.8) |
|
Net loss Per Share |
|
$ |
(0.12) |
|
|
$ |
(0.14) |
|
|
$ |
(0.36) |
|
|
$ |
(0.29) |
|
Adjusted EBITDA |
|
$ |
(31.8) |
|
|
$ |
(30.8) |
|
|
$ |
(107.3) |
|
|
$ |
(74.0) |
|
Devices Sold |
|
2.5 |
|
|
3.5 |
|
|
4.6 |
|
|
6.5 |
|
||||
For additional information regarding the non-GAAP financial measures, see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
Second Quarter 2020 Financial Highlights
Second Quarter 2020 Operational Highlights
COVID-19-Related Impact to Financials
Additional Highlights and Information
Forward Looking Statements
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to: our ability to develop innovative products and services that can help people during the COVID-19 pandemic; any statements regarding the anticipated impact of COVID-19 on our business; the expected timing of the completion of the transaction with Google; the ability of Google and us to complete the proposed transaction considering the various conditions to the transaction, some of which are outside the parties' control, including those conditions related to regulatory approvals; any statements concerning the expected development or competitive performance relating to Fitbit's products and services; and any statements of assumptions underlying any of the foregoing. A number of important factors and uncertainties could cause actual results or events to differ materially from those described in these forward-looking statements, including without limitation: the impact of COVID-19 on our business, results of operations, or financial condition, including the development, manufacturing, and shipment of our products; general public health, market, political, economic and business conditions, including the impact of COVID-19 on global economic conditions and consumer confidence and spending; the effects of the highly competitive market in which we operate, including competition from much larger technology companies; our ability to anticipate and satisfy consumer preferences in a timely and cost-effective manner; our ability to successfully develop, timely introduce, and achieve retail and customer acceptance of new products and services, or enhance existing products and services, including software and subscription services; our ability to accurately forecast consumer demand and adequately manage our inventory; our ability to ship products on the timelines we anticipate and avoid unexpected delays; our ability to detect, prevent or fix quality issues in our products and services; our ability to attract and retain employees; our reliance on third-party suppliers, contract manufacturers, and logistics providers and our limited control over such parties; delays in procuring components and products from third parties or their suppliers; the ability of third parties to manufacture and ship quality products in a timely manner; seasonality of demand; the concentrated nature of our retailer and distributor base; product liability issues, security breaches, or other factors that may adversely affect product performance and overall market acceptance of our products and services; our ability to integrate acquired technologies and employees of acquired businesses into our operations, particularly in new geographies; warranty claims; the relatively new and unproven market for trackers and wearable devices; the ability of our channel partners to sell our products; litigation and related costs; the impact of privacy and data security laws; changes in tax laws; the impact of tariffs; the failure to satisfy any of the conditions to the consummation of the proposed transaction with Google, including the receipt of certain governmental and regulatory approvals; the occurrence of any event, change, or other circumstance that could give rise to the termination of the Merger Agreement; the outcome of any legal proceedings that may be instituted against us related to the Merger Agreement or the proposed transaction; unexpected costs, charges or expenses resulting from the proposed transaction; the occurrence of a Company Material Adverse Effect (as defined in the Merger Agreement).
Additional risks and uncertainties are included under the caption "Risk Factors" in our Annual Report on Form 10-K for the full year ended December 31, 2019, and our Quarterly Report Form 10-Q for the three months ended April 4, 2020, which are available on our Investor Relations website at investor.fitbit.com and on the Security Exchange Commission (SEC) website at www.sec.gov. Once filed with the SEC, additional information will be set forth in our Quarterly Report on Form 10-Q for the three months ended July 4, 2020. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to update these statements as a result of new information or future events. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on such statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures in this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating loss before income taxes, non-GAAP net income (loss), non-GAAP basic/diluted net income (loss) per share, free cash flow, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, and adjusted EBITDA. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.
We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures.
There are limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, specifically stock-based compensation expense, depreciation, amortization of intangible assets, interest income, net, acquisition-related costs, and the related income tax effects of the aforementioned exclusions, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.
The following are explanations of the adjustments that are reflected in one or more of our non-GAAP financial measures:
About Fitbit, Inc. (NYSE: FIT)
Fitbit helps people lead healthier, more active lives by empowering them with data, inspiration, and guidance to reach their goals. Fitbit designs products and experiences that track and provide motivation for everyday health and fitness. Fitbit's diverse line of innovative and popular products include Fitbit Charge 4tm, Fitbit Charge 3tm, Fitbit Inspire HRtm, Fitbit Inspiretm, and Fitbit Ace 2tm activity trackers, as well as the Fitbit Ionictm and Fitbit Versatm family of smartwatches, Fitbit Flyertm wireless headphones, and Fitbit Ariatm family of connected scales. Fitbit products are carried in over 39,000 retail stores and in over 100 countries around the globe. Powered by one of the world's largest health and fitness social networks and databases of health and fitness data, the Fitbit platform delivers personalized experiences, insights and guidance through leading software and interactive tools, including the Fitbit and Fitbit Coach apps, and Fitbit OS for smartwatches. Fitbit Health Solutions develops health and wellness solutions designed to help increase engagement, improve health outcomes, and drive a positive return for employers, health plans and health systems.
Fitbit and the Fitbit logo are trademarks or registered trademarks of Fitbit, Inc. in the United States, and other countries. Additional Fitbit trademarks can be found at www.fitbit.com/legal/trademark-list. Third-party trademarks are the property of their respective owners.
Connect with us on Facebook, Instagram and Twitter and share your Fitbit experience
FITBIT, INC. |
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 4, 2020 |
|
June 29, 2019 |
|
July 4, 2020 |
|
June 29, 2019 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenue |
$ |
261,272 |
|
|
$ |
313,556 |
|
|
$ |
449,430 |
|
|
$ |
585,446 |
|
|
Cost of revenue |
168,230 |
|
|
205,342 |
|
|
301,466 |
|
|
387,779 |
|
|||||
Gross profit |
93,042 |
|
|
108,214 |
|
|
147,964 |
|
|
197,667 |
|
|||||
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Research and development |
83,733 |
|
|
70,919 |
|
|
165,322 |
|
|
147,958 |
|
|||||
Sales and marketing |
65,470 |
|
|
83,060 |
|
|
122,431 |
|
|
151,676 |
|
|||||
General and administrative |
35,049 |
|
|
24,865 |
|
|
77,090 |
|
|
51,557 |
|
|||||
Total operating expenses |
184,252 |
|
|
178,844 |
|
|
364,843 |
|
|
351,191 |
|
|||||
Operating loss |
(91,210) |
|
|
(70,630) |
|
|
(216,879) |
|
|
(153,524) |
|
|||||
Interest income, net |
13 |
|
|
2,622 |
|
|
1,306 |
|
|
6,088 |
|
|||||
Other income, net |
2,237 |
|
|
461 |
|
|
2,233 |
|
|
1,734 |
|
|||||
Loss before income taxes |
(88,960) |
|
|
(67,547) |
|
|
(213,340) |
|
|
(145,702) |
|
|||||
Income tax expense (benefit) |
15,137 |
|
|
971 |
|
|
(129,537) |
|
|
2,281 |
|
|||||
Net loss |
$ |
(104,097) |
|
|
$ |
(68,518) |
|
|
$ |
(83,803) |
|
|
$ |
(147,983) |
|
|
Net loss per share: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.39) |
|
|
$ |
(0.27) |
|
|
$ |
(0.31) |
|
|
$ |
(0.58) |
|
|
Diluted |
$ |
(0.39) |
|
|
$ |
(0.27) |
|
|
$ |
(0.31) |
|
|
$ |
(0.58) |
|
|
Shares used to compute net loss per share: |
|
|
|
|
|
|
|
|||||||||
Basic |
267,872 |
|
|
256,160 |
|
|
266,742 |
|
|
254,659 |
|
|||||
Diluted |
267,872 |
|
|
256,160 |
|
|
266,742 |
|
|
254,659 |
|
|||||
FITBIT, INC. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(unaudited) |
||||||||
|
|
July 4, 2020 | December 31, 2019 | |||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
343,476 |
|
|
$ |
334,479 |
|
Marketable securities |
|
104,755 |
|
|
184,023 |
|
||
Accounts receivable, net |
|
215,394 |
|
|
435,269 |
|
||
Inventories |
|
65,371 |
|
|
136,752 |
|
||
Income tax receivable |
|
26,753 |
|
|
573 |
|
||
Prepaid expenses and other current assets |
|
31,829 |
|
|
28,656 |
|
||
Total current assets |
|
787,578 |
|
|
1,119,752 |
|
||
Property and equipment, net |
|
78,552 |
|
|
82,756 |
|
||
Operating lease right-of use-assets |
|
65,579 |
|
|
70,225 |
|
||
Goodwill |
|
64,812 |
|
|
64,812 |
|
||
Intangible assets, net |
|
9,668 |
|
|
16,746 |
|
||
Deferred tax assets |
|
26,017 |
|
|
4,111 |
|
||
Other assets |
|
10,269 |
|
|
9,684 |
|
||
Total assets |
|
$ |
1,042,475 |
|
|
$ |
1,368,086 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
79,726 |
|
|
$ |
194,626 |
|
Accrued liabilities |
|
358,288 |
|
|
513,530 |
|
||
Operating lease liabilities |
|
21,687 |
|
|
23,511 |
|
||
Deferred revenue |
|
32,589 |
|
|
32,307 |
|
||
Income taxes payable |
|
1,448 |
|
|
636 |
|
||
Total current liabilities |
|
493,738 |
|
|
764,610 |
|
||
Long-term deferred revenue |
|
4,626 |
|
|
8,535 |
|
||
Long-term operating lease liabilities |
|
61,410 |
|
|
67,902 |
|
||
Other liabilities |
|
52,385 |
|
|
39,776 |
|
||
Total liabilities |
|
612,159 |
|
|
880,823 |
|
||
|
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Class A and Class B common stock |
|
27 |
|
|
26 |
|
||
Additional paid-in capital |
|
1,153,520 |
|
|
1,126,827 |
|
||
Accumulated other comprehensive income |
|
350 |
|
|
188 |
|
||
Accumulated deficit |
|
(723,581) |
|
|
(639,778) |
|
||
Total stockholders' equity |
|
430,316 |
|
|
487,263 |
|
||
Total liabilities and stockholders' equity |
|
$ |
1,042,475 |
|
|
$ |
1,368,086 |
|
FITBIT, INC. |
||||||||||||||||
Condensed Consolidated Statements of Cash Flow |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 4, 2020 |
|
June 29, 2019 |
|
July 4, 2020 |
|
June 29, 2019 |
|||||||||
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(104,097) |
|
|
$ |
(68,518) |
|
|
$ |
(83,803) |
|
|
$ |
(147,983) |
|
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|||||||||
Provision for doubtful accounts |
(441) |
|
|
16 |
|
|
6,045 |
|
|
48 |
|
|||||
Provision for excess and obsolete inventory |
3,415 |
|
|
2,644 |
|
|
13,260 |
|
|
4,122 |
|
|||||
Depreciation |
10,453 |
|
|
16,733 |
|
|
21,042 |
|
|
30,106 |
|
|||||
Non-cash lease expense |
6,953 |
|
|
3,902 |
|
|
8,477 |
|
|
11,615 |
|
|||||
Accelerated depreciation of property and equipment |
613 |
|
|
170 |
|
|
626 |
|
|
170 |
|
|||||
Amortization of intangible assets |
3,049 |
|
|
2,061 |
|
|
7,078 |
|
|
4,121 |
|
|||||
Stock-based compensation |
19,770 |
|
|
20,547 |
|
|
39,497 |
|
|
41,091 |
|
|||||
Deferred income taxes |
(21,865) |
|
|
154 |
|
|
(21,819) |
|
|
134 |
|
|||||
Other |
319 |
|
|
212 |
|
|
324 |
|
|
162 |
|
|||||
Changes in operating assets and liabilities, net of acquisition: |
|
|
|
|
|
|
|
|||||||||
Accounts receivable |
(32,669) |
|
|
(8,031) |
|
|
213,830 |
|
|
155,561 |
|
|||||
Inventories |
36,243 |
|
|
9,775 |
|
|
56,544 |
|
|
(41,183) |
|
|||||
Prepaid expenses and other assets |
22,320 |
|
|
1,862 |
|
|
(5,753) |
|
|
14,416 |
|
|||||
Income taxes receivable |
113,074 |
|
|
(449) |
|
|
(26,180) |
|
|
(409) |
|
|||||
Accounts payable |
(19,279) |
|
|
(18,861) |
|
|
(123,657) |
|
|
(100,517) |
|
|||||
Accrued liabilities and other liabilities |
2,464 |
|
|
(28,048) |
|
|
(141,269) |
|
|
(97,964) |
|
|||||
Lease liabilities |
(6,144) |
|
|
(8,605) |
|
|
(10,900) |
|
|
(13,577) |
|
|||||
Deferred revenue |
(1,427) |
|
|
(1,216) |
|
|
(3,627) |
|
|
(3,475) |
|
|||||
Income taxes payable |
(251) |
|
|
(771) |
|
|
813 |
|
|
(514) |
|
|||||
Net cash provided by (used in) operating activities |
32,500 |
|
|
(76,423) |
|
|
(49,472) |
|
|
(144,076) |
|
|||||
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|||||||||
Purchase of property and equipment |
(4,994) |
|
|
(4,731) |
|
|
(8,550) |
|
|
(10,827) |
|
|||||
Purchases of marketable securities |
? |
|
|
(108,880) |
|
|
(59,735) |
|
|
(220,495) |
|
|||||
Sales of marketable securities |
? |
|
|
2,016 |
|
|
? |
|
|
2,016 |
|
|||||
Maturities of marketable securities |
71,174 |
|
|
111,120 |
|
|
139,365 |
|
|
239,429 |
|
|||||
Net cash provided by (used in) investing activities |
66,180 |
|
|
(475) |
|
|
71,080 |
|
|
10,123 |
|
|||||
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
|||||||||
Payment of financing lease liability |
(1,384) |
|
|
(340) |
|
|
(1,384) |
|
|
(937) |
|
|||||
Proceeds from issuance of common stock |
544 |
|
|
5,881 |
|
|
1,002 |
|
|
6,812 |
|
|||||
Taxes paid related to net share settlement of restricted stock units |
(6,361) |
|
|
(4,227) |
|
|
(12,229) |
|
|
(10,649) |
|
|||||
Net cash provided by (used in) financing activities |
(7,201) |
|
|
1,314 |
|
|
(12,611) |
|
|
(4,774) |
|
|||||
Net increase (decrease) in cash and cash equivalents |
91,479 |
|
|
(75,584) |
|
|
8,997 |
|
|
(138,727) |
|
|||||
Cash and cash equivalents at beginning of period |
251,997 |
|
|
410,813 |
|
|
334,479 |
|
|
473,956 |
|
|||||
Cash and cash equivalents at end of period |
$ |
343,476 |
|
|
$ |
335,229 |
|
|
$ |
343,476 |
|
|
$ |
335,229 |
|
|
FITBIT, INC. |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||
(in thousands, except percentages and per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 4, 2020 |
|
June 29, 2019 |
|
July 4, 2020 |
|
June 29, 2019 |
|||||||||
Non-GAAP gross profit: |
|
|
|
|
|
|
|
|||||||||
GAAP gross profit |
$ |
93,042 |
|
|
$ |
108,214 |
|
|
$ |
147,964 |
|
|
$ |
197,667 |
|
|
Stock-based compensation expense |
2,033 |
|
|
1,521 |
|
|
4,212 |
|
|
2,951 |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
190 |
|
|||||
Acquisition-related costs |
1,497 |
|
|
? |
|
|
2,262 |
|
|
? |
|
|||||
Intangible assets amortization |
1,548 |
|
|
1,853 |
|
|
3,940 |
|
|
3,707 |
|
|||||
Non-GAAP gross profit |
$ |
98,120 |
|
|
$ |
111,588 |
|
|
$ |
158,378 |
|
|
$ |
204,515 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP gross margin (as a percentage of revenue): |
|
|
|
|
|
|
|
|||||||||
GAAP gross margin |
35.6 |
% |
|
34.5 |
% |
|
32.9 |
% |
|
33.8 |
% |
|||||
Stock-based compensation expense |
0.8 |
|
|
0.5 |
|
|
0.9 |
|
|
0.5 |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
? |
|
|||||
Acquisition-related costs |
0.6 |
|
|
? |
|
|
0.5 |
|
|
? |
|
|||||
Intangible assets amortization |
0.6 |
|
|
0.6 |
|
|
0.9 |
|
|
0.6 |
|
|||||
Non-GAAP gross margin |
37.6 |
% |
|
35.6 |
% |
|
35.2 |
% |
|
34.9 |
% |
|||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP research and development: |
|
|
|
|
|
|
|
|||||||||
GAAP research and development |
$ |
83,733 |
|
|
$ |
70,919 |
|
|
$ |
165,322 |
|
|
$ |
147,958 |
|
|
Stock-based compensation expense |
(11,442) |
|
|
(11,892) |
|
|
(22,561) |
|
|
(23,880) |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
(1,550) |
|
|||||
Acquisition-related costs |
(9,653) |
|
|
? |
|
|
(15,364) |
|
|
? |
|
|||||
Non-GAAP research and development |
$ |
62,638 |
|
|
$ |
59,027 |
|
|
$ |
127,397 |
|
|
$ |
122,528 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP sales and marketing expense: |
|
|
|
|
|
|
|
|||||||||
GAAP sales and marketing |
$ |
65,470 |
|
|
$ |
83,060 |
|
|
$ |
122,431 |
|
|
$ |
151,676 |
|
|
Stock-based compensation expense |
(2,899) |
|
|
(3,175) |
|
|
(5,674) |
|
|
(6,313) |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
(589) |
|
|||||
Acquisition-related costs |
(1,836) |
|
|
? |
|
|
(4,240) |
|
|
? |
|
|||||
Intangible assets amortization |
(1,354) |
|
|
(136) |
|
|
(2,797) |
|
|
(271) |
|
|||||
Non-GAAP sales and marketing |
$ |
59,381 |
|
|
$ |
79,749 |
|
|
$ |
109,720 |
|
|
$ |
144,503 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP general and administrative expense: |
|
|
|
|
|
|
|
|||||||||
GAAP general and administrative |
$ |
35,049 |
|
|
$ |
24,865 |
|
|
$ |
77,090 |
|
|
$ |
51,557 |
|
|
Stock-based compensation expense |
(3,396) |
|
|
(3,959) |
|
|
(7,050) |
|
|
(7,947) |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
(129) |
|
|||||
Acquisition-related costs |
(10,934) |
|
|
? |
|
|
(17,826) |
|
|
? |
|
|||||
Intangible assets amortization |
(147) |
|
|
(72) |
|
|
(341) |
|
|
(143) |
|
|||||
Non-GAAP general and administrative |
$ |
20,572 |
|
|
$ |
20,834 |
|
|
$ |
51,873 |
|
|
$ |
43,338 |
|
|
FITBIT, INC. |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||
(in thousands, except percentages and per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 4, 2020 |
|
June 29, 2019 |
|
July 4, 2020 |
|
June 29, 2019 |
|||||||||
Non-GAAP operating expenses: |
|
|
|
|
|
|
|
|||||||||
GAAP operating expenses |
$ |
184,252 |
|
|
$ |
178,844 |
|
|
$ |
364,843 |
|
|
$ |
351,191 |
|
|
Stock-based compensation expense |
(17,737) |
|
|
(19,026) |
|
|
(35,285) |
|
|
(38,140) |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
(2,268) |
|
|||||
Acquisition-related costs |
(22,423) |
|
|
? |
|
|
(37,430) |
|
|
? |
|
|||||
Intangible assets amortization |
(1,501) |
|
|
(208) |
|
|
(3,138) |
|
|
(414) |
|
|||||
Non-GAAP operating expenses |
$ |
142,591 |
|
|
$ |
159,610 |
|
|
$ |
288,990 |
|
|
$ |
310,369 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP operating loss and loss before income taxes: |
|
|
|
|
|
|
|
|||||||||
GAAP operating loss |
$ |
(91,210) |
|
|
$ |
(70,630) |
|
|
$ |
(216,879) |
|
|
$ |
(153,524) |
|
|
Stock-based compensation expense |
19,770 |
|
|
20,547 |
|
|
39,497 |
|
|
41,091 |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
2,458 |
|
|||||
Acquisition-related costs |
23,920 |
|
|
? |
|
|
39,692 |
|
|
? |
|
|||||
Intangible assets amortization |
3,049 |
|
|
2,061 |
|
|
7,078 |
|
|
4,121 |
|
|||||
Non-GAAP operating loss |
(44,471) |
|
|
(48,022) |
|
|
(130,612) |
|
|
(105,854) |
|
|||||
Interest income, net |
13 |
|
|
2,622 |
|
|
1,306 |
|
|
6,088 |
|
|||||
Other income, net |
2,237 |
|
|
461 |
|
|
2,233 |
|
|
1,734 |
|
|||||
Non-GAAP loss before income taxes |
$ |
(42,221) |
|
|
$ |
(44,939) |
|
|
$ |
(127,073) |
|
|
$ |
(98,032) |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net loss and net loss per share: |
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(104,097) |
|
|
$ |
(68,518) |
|
|
$ |
(83,803) |
|
|
$ |
(147,983) |
|
|
Stock-based compensation expense |
19,770 |
|
|
20,547 |
|
|
39,497 |
|
|
41,091 |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
2,458 |
|
|||||
Acquisition-related costs |
23,920 |
|
|
? |
|
|
39,692 |
|
|
? |
|
|||||
Intangible assets amortization |
3,049 |
|
|
2,061 |
|
|
7,078 |
|
|
4,121 |
|
|||||
Income tax effect of non-GAAP adjustments |
25,832 |
|
|
10,139 |
|
|
(98,582) |
|
|
26,474 |
|
|||||
Non-GAAP net loss |
$ |
(31,526) |
|
|
$ |
(35,771) |
|
|
$ |
(96,118) |
|
|
$ |
(73,839) |
|
|
|
|
|
|
|
|
|
|
|||||||||
GAAP diluted shares |
267,872 |
|
|
256,160 |
|
|
266,742 |
|
|
254,659 |
|
|||||
Other dilutive equity awards |
? |
|
|
? |
|
|
? |
|
|
? |
|
|||||
Non-GAAP diluted shares |
267,872 |
|
|
256,160 |
|
|
266,742 |
|
|
254,659 |
|
|||||
Non-GAAP diluted net loss per share |
$ |
(0.12) |
|
|
$ |
(0.14) |
|
|
$ |
(0.36) |
|
|
$ |
(0.29) |
|
|
FITBIT, INC. |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||
(in thousands, except percentages and per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 4, 2020 |
|
June 29, 2019 |
|
July 4, 2020 |
|
June 29, 2019 |
|||||||||
Free cash flow: |
|
|
|
|
|
|
|
|||||||||
Net cash provided by (used in) operating activities |
$ |
32,500 |
|
|
$ |
(76,423) |
|
|
$ |
(49,472) |
|
|
$ |
(144,076) |
|
|
Purchases of property and equipment |
(4,994) |
|
|
(4,731) |
|
|
(8,550) |
|
|
(10,827) |
|
|||||
Free cash flow |
$ |
27,506 |
|
|
$ |
(81,154) |
|
|
$ |
(58,022) |
|
|
$ |
(154,903) |
|
|
Net cash provided by (used in) by investing activities |
$ |
66,180 |
|
|
$ |
(475) |
|
|
$ |
71,080 |
|
|
$ |
10,123 |
|
|
Net cash provided by (used in) financing activities |
$ |
(7,201) |
|
|
$ |
1,314 |
|
|
$ |
(12,611) |
|
|
$ |
(4,774) |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(104,097) |
|
|
$ |
(68,518) |
|
|
$ |
(83,803) |
|
|
$ |
(147,983) |
|
|
Stock-based compensation expense |
19,770 |
|
|
20,547 |
|
|
39,497 |
|
|
41,091 |
|
|||||
Impact of restructuring |
? |
|
|
? |
|
|
? |
|
|
2,458 |
|
|||||
Acquisition-related costs |
23,920 |
|
|
? |
|
|
39,692 |
|
|
? |
|
|||||
Depreciation and intangible assets amortization |
13,502 |
|
|
18,792 |
|
|
28,120 |
|
|
34,225 |
|
|||||
Interest expense, net |
(13) |
|
|
(2,622) |
|
|
(1,306) |
|
|
(6,088) |
|
|||||
Income tax benefit (expense) |
15,137 |
|
|
971 |
|
|
(129,537) |
|
|
2,281 |
|
|||||
Adjusted EBITDA |
$ |
(31,781) |
|
|
$ |
(30,830) |
|
|
$ |
(107,337) |
|
|
$ |
(74,016) |
|
|
|
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense: |
|
|
|
|
|
|
|
|||||||||
Cost of revenue |
$ |
2,033 |
|
|
$ |
1,521 |
|
|
$ |
4,212 |
|
|
$ |
2,951 |
|
|
Research and development |
11,442 |
|
|
11,892 |
|
|
22,561 |
|
|
23,880 |
|
|||||
Sales and marketing |
2,899 |
|
|
3,175 |
|
|
5,674 |
|
|
6,313 |
|
|||||
General and administrative |
3,396 |
|
|
3,959 |
|
|
7,050 |
|
|
7,947 |
|
|||||
Total stock-based compensation expense |
$ |
19,770 |
|
|
$ |
20,547 |
|
|
$ |
39,497 |
|
|
$ |
41,091 |
|
|
FITBIT, INC. |
||||||||||||||||
Revenue by Geographic Region |
||||||||||||||||
(in thousands) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
July 4, 2020 |
|
June 29, 2019 |
|
July 4, 2020 |
|
June 29, 2019 |
|||||||||
United States |
$ |
164,729 |
|
|
$ |
180,862 |
|
|
$ |
266,768 |
|
|
$ |
315,953 |
|
|
Americas, excluding United States |
10,455 |
|
|
19,178 |
|
|
21,198 |
|
|
34,505 |
|
|||||
Europe, Middle East, and Africa |
72,375 |
|
|
87,563 |
|
|
129,381 |
|
|
174,661 |
|
|||||
Asia Pacific |
13,713 |
|
|
25,953 |
|
|
32,083 |
|
|
60,327 |
|
|||||
Total |
$ |
261,272 |
|
|
$ |
313,556 |
|
|
$ |
449,430 |
|
|
$ |
585,446 |
|
|
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